Aaron's cuts its fiscal 4Q, 2013 forecasts

by AP


Chief Executive Ronald W. Allen said revenue and customer growth were lower than its prior expectations.

ATLANTA (AP) — Aaron's is lowering its fiscal fourth-quarter and 2013 outlooks partly because of tough economic conditions facing its shoppers.

The retailer's stock fell more than 7 percent in morning trading Monday.

Aaron sells and leases furniture, consumer electronics, home appliances and accessories. Chairman and President Ronald Allen said in a statement that the company's low- to middle-income shoppers are still dealing with difficult economic conditions. Product shipments to franchisees were also less in the fourth quarter than the prior-year period, he added. Sales at company-run stores open at least a year slipped.

The company now foresees quarterly earnings of 27 cents to 31 cents per share on revenue of about $555 million. Its previous outlook was for earnings between 38 cents and 42 cents per share on revenue of $575 million.

The company's revenue forecasts exclude revenue of franchisees.

Analysts surveyed by FactSet expect fourth-quarter earnings of 40 cents per share on revenue of $575.2 million.

For 2013, Aaron's now predicts adjusted earnings of $1.84 to $1.88 per share on revenue of approximately $2.24 billion. Previously the company forecast adjusted earnings of $1.95 to $1.99 per share on revenue of $2.26 billion.

Wall Street is looking for earnings of $1.97 per share on revenue of $2.26 billion.

CEO Allen said business trends aren't expected to dramatically improve near term.

Going forward, Aaron's anticipates fiscal 2014 earnings of $1.80 to $2 per share. Revenue is expected to be about $2.3 billion.

Analysts predict earnings of $2.17 per share on revenue of $2.37 billion.

Shares of Aaron's Inc. declined $2.15, or 7.4 percent, to $26.80 in morning trading.

The company expects to report its final fourth-quarter and full-year financial results on Feb. 7.

More Local

Westmoreland may seek House Speaker post

Coweta County resident Lynn Westmoreland may be eyeing a run for Speaker of the House of Representatives. Speaker John Boehner announced Sep ... Read More

Surveillance footage IDs thief

Video surveillance footage helped capture a man accused of stealing items from a parked car. Authorities from the Coweta County Sheriff&rsqu ... Read More

Post office grounds draw ire

Coweta citizens are complaining about the unkept grounds of the U.S. Post Office located on Postal Parkway in Newnan. Locals said the ground ... Read More

ALDI grocery store coming in 2016

The city of Newnan announced last week that the ALDI grocery store chain will move into the old OfficeMax space in Newnan Pavilion located o ... Read More

Piedmont refutes reports of no plans for urgent care facility

Piedmont Healthcare has issued a statement that the medical care organization does want to have an urgent care facility in Newnan and that a ... Read More

No charge for admission

Oak Grove Gardens open to the public Saturday

The annual fall garden tour at historic Oak Grove Plantation and Gardens will be Saturday from 10 a.m. to 3 p.m. The fall tour is free, and ... Read More